© Prentice Hall, 2002

Learning Objectives
You should learn to:
1. Explain the difference between managers and leaders
2. Describe the trait and behavioral theories of leadership
3. Explain the Fiedler contingency model
4. Contrast the Hersey-Blanchard and leader participation models of leadership
5. Summarize the path-goal model
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Learning Objectives (cont.)
You should learn to:
1. Contrast transactional and transformational leaders
2. Describe the main characteristics of charismatic, visionary, and team leaders
3. Explain the various sources of power a leader might possess
4. Describe how leaders can create a culture of trust
5. Explain gender and cultural differences in leadership
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Manager and Leader
• Some Authors treat them equally.
• Managers appointed to their positions. Their abilities to influence based on the formal authority inherited in that position.
• Leaders may be either appointed or emerged from a work group.
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Leadership
Leader someone who can influence others and who has managerial authority.
• all managers should ideally be leaders.
• not all leaders have the ability to be an effective manager. (performing management functions).
Leadership
• process of influencing a group toward the achievement of goals.
• a heavily researched topic
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Managers Versus Leaders
Leaders
Managers
– Are appointed to their position.
–
Are appointed or emerge from within a work group.
– Can influence people only to the extent of the formal authority of their position.
–
Can influence other people and have managerial authority.
– Do not necessarily have the skills and capabilities to be leaders.
–
Do not necessarily have the skills and capabilities to be managers.
Leadership is the process of influencing a group toward the achievement of goals.
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Early Leadership Theories
Trait Theories:
• Research in the 1920s and 1930s focused basically on leader traits. leader traits - characteristics that might be used to differentiate leaders from non-leaders.
• Might be used as a basis for selecting the “right” people to assume formal leadership positions.
• Proved to be impossible to identify a set of traits that would always differentiate leaders from non-leaders.
• Explanations based solely on traits ignored the interactions of leaders, their groups, and situational factors.
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Traits associated with leadership
1drive: have ambitious and energy, tirelessly.
2- desire to lead.
3- honesty and integrity: building trusting relationships.
4- self-confidence.
5- Intelligence
6- job relevance knowledge .
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Early Leadership Theories
Behavioral Theories
Identify behavior that differentiate effective leaders from ineffective leaders.
• There are four leader behavior studies:
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Early Leadership Theories
Behavioral Theories
First: University of Iowa Studies - Kurt Lewin.
• Explored three leadership styles:
•
Autocratic - leader dictated work methods.
Centralize authority.
•
Democratic - involved employees in decision making. used feedback to coach employees
•
Laissez-faire/lenient - gave the group complete freedom to make decisions and complete work.
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Early Leadership Theories
Behavioral Theories
First: University of Iowa Studies - Kurt
Lewin.
• Explored three leadership styles:
• Which style is better? Discussion
• results were mixed with respect to performance
–satisfaction higher with democratic leader
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Early Leadership Theories (cont.)
Behavioral Theories (cont.):
•
Second: Ohio State Studies - identified two dimensions of leadership behavior.
• initiating structure - a leader was likely to define and structure her/his role and the roles of group members to seek goal attainment.
• It includes: attempts to organize work, work relationships, and goals.
© Prentice Hall, 2002

Early Leadership Theories (cont.)
Behavioral Theories (cont.):
•
Second: Ohio State Studies - identified two dimensions of leadership behavior.
• consideration - a leader had job relationships characterized by mutual trust and respect for group members’ ideas and feelings.
• findings - high-high leaders achieved high group task performance and satisfaction
• however, high-high was not always effective. There is a need to integrate situational factors.
© Prentice Hall, 2002

Early Leadership Theories (cont.)
Behavioral Theories (cont.).
Third: University of Michigan Studies - identified two dimensions of leadership
• employee oriented - emphasized interpersonal relationships
• accepts individual differences among subordinates
• associated with high group productivity.
• production oriented - emphasized the technical or task aspects of the job.
• concerned with accomplishing the group’s tasks
• associated with low group productivity and low job satisfaction
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Early Leadership Theories (cont.)
Behavioral Theories (cont.)
•
Fourth: Managerial Grid - two-dimensional grid that provides a framework for conceptualizing leadership style
• dimensions are concern for people and concern for production.
• It ranked them on scale from 1 to 9. though we have 81 potential categories, emphasis was placed on five management styles described.
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The
Managerial
Grid
Source: Reprinted by permission of
Harvard Business Review . An exhibit from “Breakthrough in Organization
Development” by Robert R. Blake,
Jane S. Mouton, Louis B. Barnes, and Larry E. Greiner, November
–
December 1964, p. 136. Copyright ©
1964 by the President and Fellows of
Harvard College. All rights reserved.
© Prentice Hall, 2002
Exhibit 17.3

Early Leadership Theories (cont.)
Behavioral Theories (cont.)
• impoverished (1,1) - minimum effort to reach goals and sustain organization membership.
•
Task management (9,1) - arrange operations to be efficient with minimum human involvement.
• middle-of-the-road (5,5) - adequate performance by balancing work and human concerns
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Early Leadership Theories (cont.)
Behavioral Theories (cont.)
Managerial Grid (cont.)
• five management styles described (cont.)
• country club (1,9) - attention to human needs and creation of comfortable work environment. Limited concern for production.
• team (9,9) - committed people motivated by a common purpose, trust, and mutual respect.
• concluded that managers should use (9,9) style.
• little empirical evidence to support that (9,9) style is effective in all situations.
• The Grid offer no answer for what made a manager an effective leader
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Group work
Identify the suitable style of leadership to the following situation:
The country is under crisis situation, too much rumors and unemployment reached 80%.
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Contingency Theories Of Leadership
Basic Assumptions
• leader effectiveness depends on the situation.
• Must isolate situational conditions or contingencies
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Contingency Theories (cont.)
Fiedler Model
• effective group performance depends on matching the leader’s style and the degree to which the situation permits the leader to control and influence.
• Fiedler believes that person’s style was one of two: task oriented or relationship oriented.
• He developed:
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Contingency Theories (cont.)
• Fiedler developed the
that measures whether a person is task or relationship oriented.
• This questionnaire contained 18 pairs of adjectives, and the leaders were asked to describe the person they least preferred to work with.
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Contingency Theories (cont.)
• He also isolated three situational criteria that he believed could be manipulated\controlled to create the proper match with the behavioral orientation.
–High score: a relationship-oriented leadership style
–Low score: a task-oriented leadership style
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Contingency Theories (cont.)
Fiedler Model (cont.)
• These three criteria are as follows:
1. leader-member relations - degree of confidence, trust, and respect members had for leader.
2. Task structure - degree to which job assignments were formalized and procedurized.
3. Position power - degree of influence a leader had over power-based activities. such as hiring, firing, discipline, promotions, and salary increases.
• model assumes that leader’s style was always the same and could not change in different situations
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Findings Of The Fiedler Model
Good
Task
Oriented
Relationship
Oriented
Poor
Favorable Moderate Unfavorable
Category
Leader-Member
Relations
I II III IV V VI VII VIII
Good Good Good Good Poor Poor Poor Poor
Task Structure High High Low Low High High Low Low
Position Power
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Strong Weak Strong Weak Strong Weak Strong Weak

Contingency Theories (cont.)
Fiedler Model (cont.)
• results indicated that:
• task-oriented leaders performed better in situations that are very favorable to them and in situations that are very unfavorable
• relationship-oriented leaders performed better in situations that are moderately favorable
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Contingency Theories (cont.)
Fiedler Model (cont.)
• Implications for improving leadership:
1. place leaders in situations suited to their style
2. change the situation to fit the leader
• Considerable empirical support for the model
• Drawbacks: unrealistic to assume that leader cannot alter her/his style
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Contingency Theories (cont.)
Hersey and Blanchard’s Situational Leadership Theory
• appropriate leadership style is contingent on the followers’ readiness
• readiness - extent to which people have the ability and willingness to accomplish a specific task.
• reflects the reality that it is followers who accept or reject the leader.
• based on two leadership dimensions task behaviors and relationship behaviors.
•
Designed like the relationship between father and child.
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Contingency Theories (cont.)
Situational Leadership Theory (cont.)
• four leadership styles defined by the two dimensions
•
Telling
– (high task-low relationship) leader defines roles and tells people how to do their jobs. people are neither competent nor confident. Suitable R1
•
Selling - (high task- high relationship) leader is both directive and supportive.
• people are unable but willing to do necessary tasks.
Suitable R2
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Contingency Theories (cont.)
Situational Leadership Theory (cont.)
• four leadership styles defined by the two dimensions
• Participating - (low task- high relationship) leader and follower make decisions
• people are able but unwilling to do the job. Suitable R3
•
Delegating - (low task-low relationship) leader provides little direction or support. people are able and willing to do the job. Suitable R4
• Tests of the theory have yielded disappointing results.
Because of internal model ambiguities and inconsistencies.
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Hersey and Blanchard’s Situational Leadership Model
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Contingency Theories… (cont’d)
Leader Participation Model (Vroom and
Yetton)
– Posits that leader behavior must be adjusted to reflect the task structure—whether it is routine, non-routine, or in between—based on a sequential set of rules (contingencies) for determining the form and amount of follower participation in decision making in a given situation.
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Contingency Theories… (cont’d)
Leader Participation Model Contingencies :
1. Decision significance
2. Importance of commitment
3. Leader expertise
4. Likelihood of commitment
5. Group support
6. Group expertise
7. Team competence
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Contingency Theories (cont.)
Leader-Participation Model
• Victor Vroom and associates
• Developed in the early 1970s.
• Rule selection determined by the situation.
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Contingency Theories (cont.)
Leader Participation Model(cont.)
5 Leadership Styles
•
Decide - leader makes decision alone, either announcing or selling to group
•
Consult Individually - leader makes decision after obtaining feedback from group members individually
•
Consult Group - leader makes decision after obtaining feedback from group members in meeting
•
Facilitate - leader, acting as facilitator, defines problem and boundaries for decision-making after presenting it to group
•
Delegate - leader permits group to make decision within prescribed limits
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Time-Driven Model

Time-driven model
Short-term in its orientation and concern with making effective decisions with minimum cost.
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Contingency Theories (cont.)
Path-Goal Model
• Robert House leader’s job is to assist followers in attaining their goals that are compatible /well-matched with the overall objectives of the group or organization.
• Path-goal theory says that a leader’s behavior is acceptable to subordinates to the degree that they view it as an immediate source of satisfaction or a source of future satisfaction.

Contingency Theories (cont.)
Path-Goal Model leader behavior is:
– acceptable to the degree that group views it as a source of immediate or future satisfaction
– motivational to the extent that it:
• makes satisfaction of subordinates’ needs contingent on effective performance
• provides the coaching, guidance, support, and rewards necessary for effective performance

Contingency Theories (cont.)
Path-Goal Model (cont.)
• identifies four leadership behaviors
1. Directive - describes tasks, sets schedules, and offers guidance on task performance.
2. Supportive - shows concern for subordinates.
3. Participative consults with subordinates and uses their suggestions before making a decision.
4. Achievement oriented - sets challenging goals and expects subordinates to perform at their highest level.
• assumes that a leader can display any or all of the behaviors depending on the situation.

Contingency Theories (cont.)
Path-Goal Model (cont.) two contingency variables affect the leadership behavior:
• environment - outside the control of the follower. determine the type of leader behavior required if follower outcomes are to be maximized.
• personal - characteristics of the follower.
• determine how the environment and leader behavior are interpreted
• leader behavior will be ineffective when:
1. It is redundant\ unneeded with sources of environmental structure.
2. it is incongruent\unrelated with follower characteristics.

Some examples of the hypotheses
Some examples of the hypotheses that have evolved out of path-goal theory include the following:
1. Directive leadership leads to greater satisfaction when tasks are ambiguous or stressful than when they’re highly structured and well laid out.
2. Directive leadership will lead to higher employee satisfaction when there is substantive conflict within a work group.
3. Supportive leadership results in high employee performance and satisfaction when subordinates are performing structured tasks.
4. A chievement-oriented leadership will increase subordinates’ expectancies that effort will lead to high performance when tasks are ambiguously structured.
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Although not every research finding has been positive, the majority of the evidence supports the logic underlying path-goal theory, which is as follows: a. Employee performance and satisfaction are likely to be positively influenced when the leader compensates for shortcomings in either the employee or the work setting.
b. However, if the leader spends time explaining tasks when those tasks are already clear or when the employee has the ability and experience to handle them, the employee is likely to see such behavior as redundant or even insulting.
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Leader
Behavior
•
Directive
• Supportive
• Participative
• Achievement oriented
Path-Goal Theory
Environmental
Contingency Factors
•
Task Structure
• Formal Authority System
• Work Group
Subordinate
Contingency Factors
•
Locus of Control
• Experience
• Perceived Ability
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Outcomes
•Performance
• Satisfaction

Office politics are a fact of life in organizations. To gain control over organizational resources, people exert power. Those with good political skills have the ability to use their various sources of power effectively to get what they need and want.
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Cutting-Edge Approaches To Leadership
Three contemporary approaches to leadership:
First: Transformational-
Transactional Leadership
- leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements.
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Cutting-Edge Approaches To Leadership
• transformational inspire followers to transcend\increase their own self-interests for the good of the organization.
• Capable of having profound effect on followers.
•
Pay attention to concerns of followers.
• change followers’ awareness of issues.
• Excite and inspire followers to put forth extra effort.
• Built on top of transactional leadership.
• Good evidence of superiority of this type of leadership.
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Three contemporary approaches to leadership:
Second: Charismatic-Visionary Leadership
It suggests that followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors.
charismatic - enthusiastic, self-confident leader whose personality and actions influence people.
Personal characteristics:
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Personal characteristics:
1. Have a vision, 2. Are able to articulate that vision, 3.
Are willing to take risks to achieve that vision, 4.
Are sensitive to both environmental constraints and follower needs, 5.
Exhibit behaviors that are out of the ordinary
• charismatic leadership correlated with high job performance and satisfaction among followers
• individuals can be trained to exhibit charismatic behaviors
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Three contemporary approaches to leadership:
Second: Charismatic-Visionary Leadership (cont.) visionary - is described as going beyond charisma with the ability to create and articulate a realistic, credible, attractive vision of the future for an organization .
1. If the vision is properly selected and implemented, it can be so energizing that it incites\provoke individuals to use their skills, talents, and resources to make it happen.
2. A vision differs from other forms of organizational direction in that it uses compelling imagery, taps into people’s emotions and energy, and creates the enthusiasm that people need to bring energy and commitment to the workplace.
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Cutting-Edge Approaches (cont.)
Three contemporary approaches to leadership:
Second: Charismatic-Visionary Leadership (cont.)
3. The key properties of a vision are that it has inspirational possibilities that are value centered, are realizable, and are well articulated.
4. What skills do visionary leaders have? a. The ability to explain the vision to others.
b. The ability to express the vision not just verbally but through behavior.
c. The ability to extend or apply the vision to different leadership contexts.
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Cutting-Edge Approaches (cont.)
Three contemporary approaches to leadership:
Third: Team Leadership
As the usage of work teams grows, the role of team leader becomes increasingly important.
1. The challenge for most managers is learning how to become an effective team leader.
2. Effective team leaders have mastered the difficult balancing act of knowing when to leave their teams alone and when to get involved.
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•
There are two priorities for a team leader.
a. Managing the team’s external boundaries b. Facilitating the team process.
•
These priorities can be broken down into four specific leadership roles.
– a.
Liaisons with external constituencies
– b.
Troubleshooters
– c.
Conflict managers
– d.
Coaches
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•
Liaisons\links with external constituencies - clarify others’ expectations of the team, gather information from the outside, and secure needed resources
• troubleshooters - ask penetrating questions, help team talk through problems, and gather needed resources
• conflict managers - identify source of conflict, who is involved, and find resolution options
• coaches - clarify role expectations, teach, offer support, and whatever else is necessary to keep performance levels high
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Coach
Liaison with external constituencies
Team
Leadership
Roles
Conflict manager
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Troubleshooter

Providing Online Leadership
Providing Online Leadership. How do you lead when people are physically separated from you?
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Providing Online Leadership
1. In virtual settings, leaders need to learn new communication skills.
2. Digital communications lack non verbal elements.
3. Managing performance online is a leadership challenge .
a. As leaders define performance online, it’s important that all members of a virtual team understand the goals, their responsibilities, and how achievement will be measured.
b. Online leaders need to facilitate performance. c.
Trust is an issue in a virtual environment.
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Leaders and Power
What is power?
the capacity of a leader to influence work actions or decisions.
And because leadership is all about
,
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Leaders and Power
French and Raven identified five sources or bases of power .
1. legitimate - authority associated with a position in the formal organizational hierarchy.
2. Coercive\compelling - ability to punish or control.
• followers react out of fear
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Contemporary Issues In Leadership
Leaders and Power
3. reward - ability to give positive benefits
• provide anything that another person values
4. expert - influence based on special skills or knowledge
5. referent\source - arises because of a person’s desirable resources or personal traits:
• leads to admiration and desire to be like that person
Most effective leaders rely on several different bases of power.
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1.
Credibility is the degree to which followers perceive someone as honest, competent, and able to inspire.
2.
Trust is the belief in the integrity, character, and ability of a leader.
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- Research has identified five dimensions that make up the concept of trust.
a. Integrity (honesty and truthfulness) b. Competence (technical and interpersonal knowledge and skills) c. Consistency (reliability, predictability, and good judgment in handling situations) d. Loyalty (willingness to protect a person, physically and emotionally) e. Openness (willingness to share ideas and information freely)
© Prentice Hall, 2002

Contemporary Issues In Leadership (cont.)
Given the fact that many organizations have moved to self-managed work teams, trust is extremely important because many of the traditional control mechanisms have been removed.
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Contemporary Issues In Leadership (cont.)
How should leaders build trust? Here are eight suggestions.
1. Practice openness.
2. Be fair.
3. Speak your feelings.
4. Tell the truth.
5. Show consistency.
6. Fulfill your promises.
7. Maintain confidences.
8. Demonstrate competence.
© Prentice Hall, 2002

Practice openness
Be fair
Demonstrate competence
Speak your feelings
Maintain confidences
© Prentice Hall, 2002
Fulfill your promises
Trust
Show consistency
Tell the truth

Contemporary Issues In Leadership (cont.)
Leading Through Empowerment
Empowerment: increasing the decision making discretion\judgment of workers.
• The increased use of empowerment is being driven by two forces.
a.The need for quick decisions by those people who are most knowledgeable about the issues.
b.
The reality that organizational downsizing has left managers with larger spans of control and in order to cope, managers are turning to employee empowerment.
© Prentice Hall, 2002

Contemporary Issues In Leadership (cont.)
Leading Through Empowerment
• Empowerment should not be considered a universal panacea\solution to problems. This universal perspective is anticontingency.
•
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The evidence generally has found that males and females do use different leadership styles.
a. Women tend to adopt a more democratic or participative style and a less autocratic or directive style than men do.
b. Women are more likely to encourage participation, share power and information, and attempt to enhance followers’ self-worth .
c. Men are more likely to use a directive, commandand-control style.
d. Men rely on the formal authority of their position for their influence base.
e.
Men use transactional leadership, handing out rewards for good work and punishment for bad.
© Prentice Hall, 2002

Leadership Styles in Different Countries
Effectiveness of leadership style influenced by national culture.
• leaders constrained by the cultural conditions their followers have come to expect.
Most leadership theories developed in the U.S. They:
1. Emphasize follower responsibilities rather than rights
2. Assume self-gratification\satisfaction rather than commitment to duty
3. Assume centrality of work and democratic value orientation
4. Stress rationality rather than spirituality
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Where Female Managers Do Better: A Scorecard
Source: R. Sharpe, “As Leaders, Women Rule,” BusinessWeek, November 20. 2000, p. 75.
© Prentice Hall, 2002

Universal Elements of Effective
Leadership
– Vision
– Foresight
– Providing encouragement
– Trustworthiness
– Dynamism
– Positiveness
– Proactiveness
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Copyright © 2005
Prentice Hall, Inc. All

1- Status and seniority significantly outweigh ability and performance
2- Low level of delegation
3- Authoritarian management style
4- Decision-making is pushed upwards
5- Decisions are renegotiable at later time
6- Absence of Western-style of democratic systems
7- Consultative style of decision-making are dominant, and conducted on a person-toperson basis
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8- Management is reactive and crisis oriented.
9- High level of uncertainty at work.
10- Strong preference of a person-oriented
.approach rather than a task oriented approach.
11- Nepotism is regarded as natural and acceptable.
12- Value loyalty over efficiency.
13- Punctuality and time are of much less concern
14- Patriarchy society, the dominance of the father
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• leader behaviors may be irrelevant in some situations
• factors that reduce leadership importance include:
1. follower characteristics - experience, training, professional orientation, or need for independence replace the need for leader support and ability to reduce ambiguity.
2. job characteristics - unambiguous and routine tasks, or tasks that are satisfying, place fewer demands on leaders
3. organizational characteristics - explicit goals, rigid rules and procedures, and cohesive work groups can substitute for formal leadership
© Prentice Hall, 2002

Use French and Raven’s list
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Do you think that most managers in real life use a contingency approach to increase their leadership effectiveness? Discuss.
There are two approaches to this question. Those organizations that offer leadership training usually focus on some of the contingency approaches. The other approach is that a leader’s effectiveness is only as good as the measures established to measure that effectiveness. Thus, if the measures don’t focus on contingency approaches, it’s doubtful that the leaders will. Often, too, organizations don’t fit the job to the person. Typically, they do the reverse; fit
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What kinds of campus activities could a full-time college student do that might lead to the perception that he or she is a charismatic leader? In pursuing those activities, what might the student do to enhance this perception of being charismatic?
It would probably revolve around the student’s involvement in campus organizations or perhaps sports teams. To enhance this perception, the student might champion a cause or get involved with some controversial issue.
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Do you think trust evolves out of an individual’s personal characteristics or out of specific situations? Explain.
Followers want leaders who are credible and whom they can trust. Trust is defined as the belief in the integrity, character, and ability of the leader. Integrity and character are definitely personal characteristics.
Research has also identified five dimensions that make up the concept of trust—and they, too, are personal characteristics.
So, trust must at least start with the personal characteristics of the individual. However, how the individual leads in particular situations will increase or diminish the trust that followers have initially placed in the leader.
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